National nonresidential construction spending edged down 0.2% in August, according to an Associated Builders and Contractors analysis of new U.S. Census Bureau data. On a seasonally adjusted annual rate, spending reached $1.24 trillion.
Ten of the 16 nonresidential subcategories posted monthly declines. Private nonresidential spending fell 0.3%, while public-sector spending dipped 0.1%.
Industry economist Anirban Basu said August marked the third decline in four months, leaving nonresidential spending 1.5% lower than a year earlier. Weakness has been concentrated in manufacturing and commercial construction, while data center projects continue to show strong activity.
Basu added that the August data does not reflect impacts from the federal government shutdown or tariffs that took effect at the start of that month. He noted that elevated borrowing costs, uncertainty and rising materials prices are weighing on private-sector activity, and any slowdown in public work could create additional pressure for contractors in the months ahead.
